Brandon businesses ‘staying the course’

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This article was published 03/02/2025 (277 days ago), so information in it may no longer be current.

Brandon Chamber of Commerce and local business managers have expressed deep concerns over the escalating trade war between Canada and the United States, warning tariffs imposed by both countries will have significant economic consequences.

The U.S. government announced Saturday it will impose a 25 per cent tariff on Canadian goods and 10 per cent on Canadian oil and energy starting Tuesday. In response, Prime Minister Justin Trudeau issued a matching 25 per cent counter-tariff on U.S. imports the same evening.

In Manitoba, the provincial government directed Manitoba Liquor and Lotteries (MBLL) to remove American liquor products from shelves across the province, effective tomorrow.

There is a need for a unified and proactive Canadian response to the trade dispute, Brandon chamber president Lois Ruston told the Sun on Sunday.

“A co-ordinated Canadian response is critical,” Ruston said. “Pulling American liquor off the shelves and minimizing procurement from U.S. businesses at all levels of government are early steps, but we need to explore every possible avenue.”

During a press conference on Sunday, Kinew said the booze directive will be one of a series of steps to stand up to what he repeatedly referred to as the “Trump tariff tax.” The move, which also requires Liquor Marts to stop ordering American products, is expected to take an $80-million bite annually out of the U.S. economy.

Other provinces, including Ontario, B.C. and Newfoundland and Labrador, previously announced they’re pulling American products from provincially-run liquor stores as part of their retaliatory plans. (Kinew said Sunday that he is not giving any directives to private retailers).

The province has also launched a 24-7 hotline for business owners and workers seeking information about the tariffs. Upcoming plans include targeted “tax deferrals and other supports for business,” Kinew said.

“This is a trade dispute, this is an economic threat, but we should also be very, very clear-eyed about the threat that this poses to our sovereignty as an independent country,” Manitoba Premier Wab Kinew told reporters. “If we bow down at this current moment, then what is the next edict that we will be told to respond to as Manitobans and Canadians?”

Ruston said Brandon businesses, especially those reliant on exports to the U.S., are in a difficult position.

“The sentiment is clear: nobody wants this,” Ruston said. “Local businesses have been closely monitoring the situation, and for now, they are staying the course despite losing margins. If this continues, more drastic decisions will have to be made.”

Local businesses are already preparing for potential long-term disruptions.

Chez Angela, a Brandon bakery and café, has committed to sourcing alternatives to U.S. ingredients where possible, manager James Chambers said, encouraging to support Canadian businesses.

“This is not the outcome anyone wanted,” Chambers said on social media. “We already work with over 25 local growers and producers, and when we can’t source locally, we look across Manitoba and then Canada. We’ve already contacted our suppliers to find alternatives to U.S. goods.”

Shape Foods, a Brandon-based flaxseed producer, is also assessing the fallout.

The company’s spokesperson Armik Babakhanians acknowledged the uncertainty surrounding the agricultural sector.

“At this stage, we are in contact with our customers to assess the potential impact,” Babakhanians said. “While I am confident the impact will be significant, the extent remains uncertain.”

Ruston tasked businesses to explore interprovincial trade opportunities as a short-term solution.

“One of the key priorities should be reducing interprovincial barriers to trade,” she said. “If Canada can open up (with) more opportunities for domestic trade, businesses may have additional options to mitigate losses from the U.S. market.”

She added it is important for local businesses to expand international trade partnerships beyond the U.S.

“Businesses will need to look at alternative global markets depending on their industry,” she added. “At the Chamber, we’re working closely with provincial and national organizations to coordinate efforts and provide support to our members.”

When asked whether eliminating PST on Canadian-made products was an option while tariffs are in place, Kinew paused to consider the idea, but didn’t make any commitments.

He encouraged Manitobans to think about changing their habits in the long-term — whether shopping local, buying Manitoba-made goods, thinking carefully about where they take their vacations, or making a “switch to Crown Royal.”

» aodutola@brandonsun.com

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